News, Takeover bids

Wyloo extends offer period of Mincor takeover

Mining exploration company Wyloo Metals has extended the offer period for its on-market takeover bid for all of nickel producer Mincor Resources’ shares.

Wyloo’s offer period to close trading on the Australian Securities Exchange has been extended to May 22, unless the offer is further extended or withdrawn altogether.

Wyloo’s offer to Mincor was originally proposed on March 21, when Wyloo was Mincor’s largest shareholder with a 19.9 per cent stake.

Wyloo’s takeover offer to Mincor is worth $760 million, with a price of $1.40 per share. Wyloo have maintained this offer is best and final and cannot be increased unless a superior proposal is received.

Mincor responded to Wyloo’s offer by advising its shareholders to take no action until the Mincor directors give a formal recommendation, which was granted not long after.

Mincor’s disclosure of nickel quality issues did threaten the acquisition, which were found after nickel supplied to BHP’s Kambalda concentrator did not meet product quality standards.

Despite this, Wyloo proceeded with its plan to buy all Mincor’s shares and as of May 2, Wyloo holds 61.64 per cent of Mincor’s shares.

Mincor’s directors have unanimously recommended for its shareholders to accept Wyloo’s offer, in the absence of a superior proposal.

Wyloo’s acquisition of Mincor is just one of many acquisitions and mergers which took place during the 2023 March quarter, with BHP’s takeover of OZ Minerals being complete as of yesterday.

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